In its latest quarterly report, Twitter has turned to DAU (Daily Active Users) instead of MAU (Monthly Active Users). Thus, the short message service follows a new trend. But that makes sense at all. And what is important?
Anyone who is listed on the stock exchange with their company wants to and permanently wants to present their investors good – ideally even better results. For those who only meet the expectations, investors often disappointed. For example, Snapchat had to experience this bitterly.
Of course, it is not easy to significantly increase sales and profits every three months. Not even the Google mother Alphabet and Facebook do this every time.
The metrics of the networks: MAU, DAU or TAU?
In the case of social networks, the two factors mentioned above usually add a third: the number of users. There are basically three measuring methods:
- TAU (Total Active Users): The total number of registered users who have been active for an indefinite period of time.
- Monthly Active Users (MAU): The number of users who have been active on the platform at least once during the last month.
- DAU (Daily Active Users): This category collects all users who are active on the platform at least once a day.
While over the years Facebook, Instagram, Twitter and co. Present only the number of their monthly active users, there is another variable since the rise of Snapchat: Because the ministry with the little spirit in the logo has since the beginning only the DAU.
With the report for the fourth quarter of 2018, Twitter is now also the first time for the new measurement method. But why is the short message service from founder and CEO Jack Dorsey now going that way?
The advantages of DAU
There are several causes for this.
On the one hand, the change is due to the fact that advertisers want to know more and more exactly who they will achieve with their campaigns. Of course, the number of daily users is much more relevant than the monthly ones.
After all, for a one-week campaign, it’s not critical how many users are on a platform within 30 days if the target group is down on the crucial days.
On the other hand, listed companies – as already mentioned – are always under high pressure to perform. If the number of users stagnates over several months, that is not a good sign for the state of the company.
For this very reason, Twitter is probably now synonymous to the DAU as a unit. After all, the network may still see marginal growth in the monthly sector, if any.
In the area of daily active users, however, it looks different. However, the figure of 126 million DAU is much lower than that of Facebook (1.52 billion). Even Snapchat (186 million active users daily) is significantly larger than the short message service.
Twitter is now counting on the number of daily active users, because it is still increasing. At the same time, however, the number is so low that it could again be unattractive for advertisers to advertise on the platform.
While Twitter affirms that they are compared to Snapchat- only the users who could potentially see an ad. However, this argument is not sufficient and is difficult for external parties to verify. When could a user see an ad and when not?
Much more, it illustrates the path already taken: always find a method that delivers positive results for you. And if this is DAUWCPSAA (daily active users who might see an ad), Twitter is certainly right as long as the number grows and is bigger than the competition.
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